A good way to make money is Indices Trading online, Stock index CFDs are financial instruments that represent the value of the underlying publicly-traded companies. One leading index is the... more" />

Indices Trading

A good way to make money is Indices Trading online, Stock index CFDs are financial instruments that represent the value of the underlying publicly-traded companies. One leading index is the S&P 500, which reflects the collective value of top companies trading on the NYSE. If the overall value of those companies’ shares rises, the price of the S&P 500 will go up.

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There are also indices that represent smaller companies trading on the NYSE, as well as indices for various stock exchanges around the world, from Japan’s NIKKEI to Germany’s DAX.

AvaTrade’s selection of 19 stock index CFDs includes:

  • S&P 500 – The value of the Standard & Poor 500 is based on the share prices of 500 leading US-based companies
  • NASDAQ 100 – This index represents the value of 100 non-financial NASDAQ-traded companies
  • FTSE 100 – The FTSE 100 is a collection of 100 of the largest publicly-traded UK companies
  • DJ EURO STOXX 50 – Euro Stoxx 50 collects together 50 of the largest European companies’ share value
  • NIFTY 50 – A representation of 50 major companies traded on the National Stock Exchange of India

Our Trading Conditions page details the full range of indices on offer, including spreads, trading hours and lot sizes.

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Why Trade CFDs?

CFD index trading offers a number of benefits to the online trader. Trading CFDs (Contracts for Difference) allows you to buy or sell financial instruments without actually owning the underlying asset. These could be commodities, stock, or in the case of stock index CFDs, the value of the underlying indices.

A trader can place a buy order on, for example, the CAC-40. If the price of the index goes up, when he comes to sell he will earn the difference between the buy and sell price. If it goes down, the trader pays the difference.

Because the trader never owns the asset, the costs are far lower, there are no restrictions on trading short, and an investment can be leveraged by up to 400 times.

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